Plant start-up cuts earnings for Steep Rock

Steep Rock Resources reports net earnings of $83,600 in the first quarter this year, compared with net of $133,600 for the similar period in 1986.

The earnings drop, the company says, is attributable mainly to lower interest income, start-up costs at the ultrafine calcite joint venture operation at Perth, Ont., and a lower average price sales mix at the dry grinding plant.

Calcite division sales in the latest quarter were $2,028,000, a 4% increase over the same period last year.

President G. E. Wood says commercial sales from the new ultrafine calcite plant are expected to begin in the second quarter, under “highly competitive market conditions.”

On the exploration side, Mr Wood says work is going ahead on the company’s King Bay and Mine Centre properties in northwestern Ontario, under agreements with Almaden Resources, and Minnova Inc.

Steep Rock’s cash position dropped to $1,082,000 at the end of the latest quarter, from $3,369,000 a year earlier, a drop Mr Wood notes reflects expenditures made by the company on the new ultrafine calcite joint venture.